China rejects US sanctions on refineries over Iran oil links

China's commerce ministry has ordered five Chinese firms not to comply with U.S. sanctions imposed over their alleged purchase of Iranian oil, calling the measures a violation of international law.

The injunction covers three Shandong-based refineries and two other companies, as Washington presses ahead with its campaign to cut off revenue to Tehran.

Why did the US sanction Chinese oil refineries?

The United States has been ramping up sanctions on Chinese firms it says are buying discounted Iranian crude, seeking to choke off revenue to Tehran.

China is one of Iran's primary oil customers, mainly through independent "teapot" refineries that rely on heavily discounted crude from the Islamic Republic.

The latest round of sanctions targets firms Washington says have helped sustain Iran's oil export revenues despite existing restrictions.

Which Chinese firms are covered by Beijing's injunction?

Beijing's commerce ministry issued an injunction stating that the U.S. sanctions "shall not be recognised, implemented, or complied with."

The order covers three companies in Shandong province: Shandong Jincheng Petrochemical Group, Shandong Shouguang Luqing Petrochemical, and Shandong Shengxing Chemical. Two additional firms are also named: Hengli Petrochemical (Dalian) Refinery and Hebei Xinhai Chemical Group.

The ministry said the U.S. measures "improperly prohibit or restrict Chinese enterprises from conducting normal economic, trade, and related activities with third countries" and violate international law. Beijing added that it has consistently opposed unilateral sanctions lacking UN authorisation.

Did the US impose any additional sanctions on China over Iranian oil?

On Friday, Washington separately sanctioned another Chinese firm, Qingdao Haiye Oil Terminal Co., Ltd., which it said had imported tens of millions of barrels of Iranian crude oil, generating billions of dollars in revenue for Tehran.

This firm was not included in Beijing's commerce ministry injunction. The latest measures mark an escalation in U.S. pressure on Chinese companies with alleged ties to the Iranian oil trade.

What is the broader diplomatic context of the China-US-Iran dispute?

The sanctions come as Washington and Tehran remain in a diplomatic standstill following U.S.-Israeli strikes on Iran in late February, with no permanent resolution to the conflict in sight.

The tensions are unfolding ahead of a planned visit by U.S. President Donald Trump to China for talks with President Xi Jinping later this month, adding a further layer of diplomatic sensitivity to the dispute over Iranian oil purchases.